Salary Calculation Confusion: Should It Be Based on 26 Days or the Full Month?

Hi, my vendor calculates salary based on 26 days. Can you please advise if this is correct or not?

Monthly salary/wages are calculated based on 30 days, while daily-rated wages are calculated based on 26 days.

Hi Manoj,

For a monthly salaried employee, the calculation needs to be done with the maximum number of days as the denominator for division. For a daily worker, it needs to be based on 26 days, so please check which module your vendor is using.

Also, note that the wages for daily and monthly employees prescribed by the minimum wage authority are different. Daily wages are slightly higher due to no extension of holiday or leave.

Thank you.

As per my understanding, daily and monthly rated wages do not differ because in daily rated wages, the weekly off amount is also considered during the fixation of wage by authority.

Your vendor's method of calculation is correct.

As per the law, the employee/worker will be eligible for a day off with pay after working for 48 hours, i.e., after working for 6 days, they are entitled to one day off per week with pay. Therefore, the total wages/salaries should be divided by 26 days. Your vendor is correct in the calculation.

Thanks and regards,

Kameswararao S